Lenders require buyers to use their appraisers..and charge them for that service when applying for a

[xiamiam]

loan..anyone who purchased a home in the last ten years in most parts of the country has lost money on that home..even if they put down 20% and in some areas if they put down 50%..why are the banks punitive toward the homeowners who trusted the appraisals the banks charged for and provided at the time of purchase? why is no one addressing this? some knew it was all bogus..some just believed in the american dream..some are not savvy..there are a myriad of reasons but why has no one addressed that the banks need to have some accountability for the appraisals they required and which the home buyers paid them for?

[Newest Reality]

1. The bankers are revealing themselves as

the actual terrorists who are acting financially to take us -- the common people -- down. Who knows what they will do next, but we do see the violence inherent in their system as it rears its ugly, hungry head.

[Cool Logic]

2. Banks are not possible for housing appraisals--the appraisers themselves bear that burden.

[xiamiam]

4. yes..but the banks require the appraisal..and charge..and approve or disapprove..not the buyer..nt

[Cronus Protagonist]

3. An "Appraiser" is a wage slave

They will evaluate at precisely what their massa's tell 'em to evaluate at.

[Raven]

5. I think you may be barking up the wrong tree. Banks have always

used their own appraisers and if an appraiser accurately valued a property 10 years ago, they can't really be responsible for what happened to the housing market in the years after the appraisal. An appraisal gives an opinion of value at the time the appraisal is made. It is based upon recent or current sales of comparable properties. In the '80s there were scams where appraisers jacked up the value of property so people could get a certain loan amount. I don't know if that is happening now. So, what I'm saying is that you can't really blame the appraiser if the property lost value due to market conditions subsequest to the appraisal but you certainly blame the appraiser if he/she overvalued the property.

[xiamiam]

7. not blaming the appraisers..asking for the banks to have some accountability in this area as well

[ellenfl]

6. banks have always used their own or affiliated appraisers who appraise

to make the loan work. iow, whatever the property value, the appraiser will appraise only to meet the banks figures. if you have a bank provided appraisal, chances are that it does not reflect the true market value of the home. it is likely that in recent years appraisers valued properties too high so the lenders could make the loans.

i have also seen realtors alter the purchase price on the contract to allow for the normal 80/20 loan to value. it's all about everyone getting theirs.

ellen fl

[exboyfil]

8. I suppose you could sue the appraiser

since you paid for a given service and relied upon that service in your purchase (consumer fraud?). Of course you can't expect the appraisers to have crystal balls to know that housing prices were going to drop. Appraisers are licensed so I guess you can sue them.

Your contract was with the appraiser. The banks may have only accepted certain appraisers but that is a different question. As far as I know you only have a few appraisers in a particular area, and usually you can chose between all of them.

An interesting article regarding a lawsuit (appraiser sued bank for blacklisting).

http://www.washingtonpost.com/wp-dyn/content/article/2008/01/25/AR2008012501650.html

As far as borrowers being deceived, I think it is more of a case of both the borrowers and lenders pushing to make the numbers work. The moral hazard came from the lender being able to package the crap loans and pawn them off on Fannie and Freddie or getting the ratings agencies to shine the turd so that it could be unloaded on pension funds etc. The GSEs should never have existed, and lenders would return to ensuring that loans are actually being paid. Obvious massive fraud by the lenders and fraud by some of the buyers as well.

[xiamiam]

9. in most cases banks have their own list of appraisers and the buyers do not have choice of that..nt

[TwilightGardener]

10. This is because the bank is protecting its interests, not the buyer's.

The buyer CAUSES the entire transaction to begin, and thus an appraisal is required, and paid for by the party who wishes to purchase property. It's really not surprising.

[sinkingfeeling]

11. Uh? Home prices have dropped. Are you saying that a house appraised 10 years ago should

have been 20% less then? Have the same house appraised today and you will see the difference. Appraisers, a decade ago, would have known about the coming real estate bust how?

[sinkingfeeling]

12. Duplicate post